West Mountain Environmental Executes Letter of Intent with Walker McNeil Group of Companies
CALGARY, ALBERTA–(Marketwired – April 11, 2017) – West Mountain Environmental Corp. (the “Company”) (TSX VENTURE:WMT) is pleased to announce that the Company has executed a non-binding Letter of Intent (“LOI”) with the Walker McNeil Group of Companies (“WMGOC”) of Calgary, Alberta. Under the terms of the LOI WMGOC will invest up to CDN$14 million in the Company with CDN$7.0 million to be invested within the next 90 days.
The LOI provides for the purchase by WMGOC of 50 million common shares of WMT from treasury at a price of $0.05 per share for total proceeds of CDN$2.5 million concurrently with the purchase by WMGOC of secured convertible debentures in the amount of CDN$4.5 million. The conversion price of the secured convertible debentures will be CDN$0.05 resulting in a maximum of 90 million common shares of WMT being issuable upon conversion. A total 140 million of common share purchase warrants will be attached to common shares and the convertible debentures, exercisable at $0.05 per warrant. The proceeds from the exercise of all the warrants, if exercised, would be CDN$7 million. The warrants will expire 24-months after closing.
Proceeds from the equity issue and secured convertible debentures are intended to be partially used to repay the Convertible Bond held by Jereh Energy Services Corporation (“Jereh”) now totalling approximately CDN$4.25 million. The remainder are intended to be used for general working capital as the Company pursues its business plan in China.
The investment by WMGOC is subject to due diligence, the negotiation of a definitive agreements between WMT and WMGOC and satisfactory settlement arrangements being reached with Jereh.
About West Mountain
West Mountain is an established Canadian environmental solutions company specializing in the thermal treatment of a variety of hazardous and non-hazardous waste streams. Through its subsidiaries it employs a unique indirectly heated, closed loop technology that allows it to extract even the most hazardous contaminants from soil and industrial sludge converting much of it into reusable oil and synthetic natural gas that it uses to sustain the process. This methodology offers significant opportunity for greenhouse gas reduction over traditional hazardous waste destruction technologies. The Company’s management team maintains expertise in hazardous waste management and contaminated site remediation with experience spanning North America and 15 countries internationally.
About Walker McNeil Group of Companies
Walker McNeil Group of Companies is a Canadian-based consortium that is currently acquiring best- in-class technologies and intellectual property, various industry experts, oil & Gas producing assets and international partners. WMGOC is aggressively pursuing a diversified strategic plan to develop the group of companies’ concept through direct ownership positions in a variety of divisions, operating companies, technologies, engineering firms and international partnerships.
Certain statements contained herein constitute forward-looking statements within the meaning of applicable securities laws. In particular, this new release provides forward-looking statements in relation to the transactions contemplated by the LOI and the use of proceeds from such transactions. The Company believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward – looking statements included herein should not be unduly relied upon. Since forward -looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. There is no certainty that the transactions contemplated by the LOI will be completed on the term set out in this news release or at all. The forward -looking statements and information contained in this news release are made as of the date hereof and West Mountain undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts the responsibility for the adequacy or accuracy of this release.
CEO and President
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